Andalucía TRADE promotes the internationalization of the Andalusian wine sector in South Korea as a strategic market

'Wine Ambassadors in South Korea' Program

The community firms held around thirty business meetings, from June 28 to 30, with international buyers, with the aim of introducing their wines in the South Core, a market with 51 million potential consumers.

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Andalucía TRADE has promoted the internationalization of the Andalusian wine sector in a strategic Asian market within the framework of its program 'Wine Ambassadors in South Korea', organizing the visit of Korean importers to five wineries of Cádiz, Huelva, Córdoba and Málaga.

The purpose of the public agency in this event has been to show the Andalusian wine market closely to Korean companies with interest in the community's wines, in a favorable context for the sector, since Andalusia exported wines to Asia in 2022 for value of 8,3 million euros, a figure never reached, thanks to a notable year-on-year growth of 19,3%.

The commercial meeting has been an exceptional opportunity to diversify international sales of Andalusian wines, since Korea is the second Asian market in the sector and the one that grew the most last year on the continent, with more than double sales, thanks to a increase of 155%, reaching the figure of 2,2 million euros. Furthermore, exports of Andalusian wine to the Korean country accounted for 26,5% of total sales to Asia, only behind Japan (40%).

With this commercial action, the aim is to strengthen this Asian market, through individualized meetings and the approach to production at origin, since the production of wine has an attractive process for international agents, who have managed to establish contacts of interest with possibility of business with Andalusian firms during these intense days of visits to the wineries of Manuel Domecq (Cádiz), Onucoop (Huelva), Pérez Baquero (Córdoba), Bodega Alvear (Córdoba) and Bodega Dimobe (Málaga).

According to reports from Andalucía TRADE, South Korea stands as an opportunity destination for Andalusian firms that want to expand the market in Asia in their business diversification strategy, since in this country there are 51 million potential consumers who have increasing income levels, and who also import more than 80% of their food.

Furthermore, Andalusian wine is known in the South Korean market for having a very attractive quality-price ratio; In fact, in recent years, during and after the pandemic, a growing trend has been detected, driven by the tastes of the younger population, in the consumption of wine within homes.

On the other hand, it is worth highlighting that Asian consumers appreciate those products that carry with them roots and tradition in their cultivation and production, a fact that gives them a component of exclusivity and turns Andalusian wine into a gourmet product.

Andalusian wines are a benchmark of Andalusia brand, and in recent years they have become good ambassadors of the community's image in the world, given the international recognition they enjoy for their wide range and variety. A total of six designations of origin and thirteen geographical indications make up the range of Andalusian wines, possibly the widest internationally, which ranges from the driest wines in the world, such as Sherry wines, to the sweetest ones, such as Pedro Ximénez, from Montilla Moriles; the latter highly appreciated by the Asian consumer.

Visit to the wineries

During the course of the action, representatives of the Andalusian wineries met with Korean importers who visited the different headquarters of the participating firms. The agenda began on June 28 with a visit to the Cádiz winery of Manuel Domecq, after which they traveled to the company's farm onucoop, in Huelva, where they tasted their wines and had the opportunity to continue networking. On Thursday the 29th, Korean importers learned about Montilla-Moriles wines in the winery Perez Baquero, to later go to the Alvear Winery, also in Córdoba. On Friday the mission ended with a visit to the Dimobe Winery in Malaga.

The organization of this action by Extenda will be co-financed with funds from the European Union through the FEDER OP of Andalusia 2014-2020, endowed with a community contribution of 80%, or any other European Program that may co-finance this action.

Asia, second growing continent

Andalusia has an increasingly strategic position following the wine sales figures to Asia, where it exported a record number of 8,3 million last year 2022, with a year-on-year growth of 19,3%, the second best among the continents. , only surpassed by Africa, which multiplies its sales almost fivefold, with an increase of 390% and sales of 6,1 million euros.

Specifically, South Korea is a market of growing interest for Andalusian firms, since it is the fastest growing destination in the Asian Top10, with more than double sales, thanks to a year-on-year growth of 155%, reaching exports worth 2,2 million euros; and represent 26,5% of total sales to the continent.

For its part, Japan ranks first in wine exports to Asia, with sales of 3,3 million, and the second best increase in the markets, with an advance of 80%; and 40% of total sales. Third place is occupied by China, with 876.000 euros, 10,5%, despite a decrease of 57%, and accounts for 10,5% of sales.